Ahsan Zafar Bakhtawari, President of the Islamabad Chamber
of Commerce and Industry (ICCI), has called upon the government to reactivate
the SME Bank, emphasizing the importance of providing easy financing options to
the SME sector. He expressed concerns that the closure of SME Bank would
deprive SMEs of affordable credit facilities.
Bakhtawari highlighted the challenges faced by SMEs in
accessing credit from banks, noting that the SME sector in Pakistan currently
receives only 6-7% of private sector financing, in contrast to 25% in
Bangladesh and 18% in India. The shuttering of SME Bank, he argued, would
further impede the expansion and growth of SMEs. He made these remarks during
discussions with a delegation of employees' unions, led by Zahoor Awan,
Chairman of the Pakistan Workers Federation's Steering Committee.
SME
Bank faces imminent closure
The delegation included Mian Akram Farid, Chairman (Central)
Employers Federation of Pakistan, the President of the SME Bank Employees
Union, the President of the Punjab Bank Employees Union, the President of the
Zarai Taraqiati Bank Employees Union, and the President of the State Life Insurance
Corporation Employees Union. Zafar Bakhtawari, former President ICCI &
Secretary General UBJ Pakistan, and Mehfooz Elahi, former President ICCI, were
also present at the meeting.
Bakhtawari commended the efforts of the Pakistan Workers
Federation in advocating for workers' rights and legislative reforms in labor
laws. He assured the delegation that ICCI would strive to raise their
legitimate concerns with the relevant authorities for resolution.
Zahoor Awan, Chairman of the Pakistan Workers Federation's
Steering Committee, expressed the concerns of SME Bank employees regarding its
planned closure. He urged the government to address these concerns, noting that
SME Bank was originally established to cater exclusively to the financing needs
of the SME sector and foster its growth. Its closure, he argued, would be a
setback for SMEs. Awan mentioned that the Executive Committee of SIFC had
directed the Ministry of Industries and Production to formulate a plan for the
revival of SME Bank, and he expressed hope that the government would work
toward reactivating it for the benefit of SMEs.
Mian Akram Farid, Chairman (Central) Employers Federation of
Pakistan, emphasized the significance of SMEs as the backbone of the economy
and urged the government to take steps to fortify SME Bank, facilitating the
growth of SMEs. Faad Waheed, Senior Vice President ICCI, stressed the need for
Pakistan to promote industrialization to revive the economy, with a specific
focus on the robust development of SMEs to achieve this objective.
Source: The Nation